Real estate prices in the national capital are set to soar with the Centre on Monday night deciding to give the green signal for regularization of 917 unathorized colonies. A notification to this effect will be issued on Tuesday, Aug 28.
Noting that real estate prices in Bihar had touched the level of Gurgaon in Haryana, Chief Minister Nitish Kumar today said the state government was keeping a close surveillance on the price spiral.
The question is what needs to be done. Or in other words, how could real estate consume more out of ‘Make in India’ manufacturing? The question in itself is flawed, if not in sync with the larger eco system issues. Setting up and making a manufacturing unit in India comes with its own challenges. Cheap labour alone would not give India any edge or cost arbitrage over the export items. ‘Make in India’ has to move beyond the rhetoric of nationalism and reforms have to be introduced at each and every level, ranging from lower corporate tax to labour laws and making the country a happy hunting ground for the manufacturers of the world.
The report highlights a continued uptrend in aggregate demand across the top 13 cities between January and March 2024, registering a robust growth of 6.9% QoQ. Moreover, after a period of relatively subdued supply, there has been a modest 0.9% QoQ increase this quarter. Despite this, the demand continues to outstrip supply, resulting in a 2.9% QoQ increase in residential prices across these 13 cities. Noida (7.4% QoQ), Greater Noida (7.2% QoQ), and Chennai (5.5% QoQ) recorded the highest appreciation in property prices.
At the beginning of 2024, as the Indian real estate stakeholders (self-styled industry experts within the realty media landscape) are yet again influence peddling their bullish narrative, the reality check by Track2Realty clearly finds that the sales growth post-Covid has neither been broad based nor democratic. Real estate is yet again emerging as a parking lot of big money post the pandemic, as visible with the off-take of luxury & super luxury despite the stagnant job growth and wage growth.
Stock market is generally defined as the “Bull market versus ‘Bear Market’. In real estate, the expression has generally been all about ‘Bullish Market’, ‘Upbeat market’, ‘Wait & Watch Market’, and ‘Pessimist Market’. ‘Bear Market’ as a term has generally not been used in the context of the housing market. Track2Realty questions why? Is it because a ‘Bear Market’ is just not possible in real estate? Or is it because real estate as an asset class has an altogether different means of cost & benefit analysis.
The Indian real estate has been known to dole out discounts & freebies every festive season to reap the auspicious spirit. It worked well for the sector for quite some time as the Indians are traditionally known to buy property during the festivals. However, the slowdown in the last five years made the marketing strategists look for alternative ways & means to bring the buyers back to the property market during the festive season. Track2Realty analyses the market trend.
The reports of Adani Realty merger with DB Realty has taken market analysts by surprise. According to the sources close to the developments, this is Adani’s bid to get into listed realty companies’ portfolio. However, the larger question that only Adani Realty can answer is that to what extent would the giant carry over the baggage of the tainted DB Realty. The memories of Godrej Properties announcement to join hands and getting market backlash of shareholders are still fresh in public memory. A Track2Realty analysis.
Within the built environment of the Indian real estate there is still denial about too many parallels between the Indian and the Chinese real estate. Many even believe that the Indian economy is not that real estate dependent as the Chinese economy. Even when admitting the crisis in Indian real estate, it is diplomatically wrapped in the developer’s justification of not learning any lessons on part of the Indian developers.
2021 was expected to be the year of recovery for the Indian real estate that weathered the black swan of Covid in the preceding year. Throughout the year the developers put up a brave face and the industry data of the top listed developers was enough to keep the prophets of doomsday in silence. However, the closer look at the sector and the large universe of the developers raises more questions than what it could answer during the turbulent year. Track2Realty looks in to look ahead.